Wayfair stock pops on narrower-than-expected Q4 loss
Wayfair (W) shares are rising in early trading after posting a narrower-than-expected loss in the fourth quarter. The e-commerce company also reported an increase in active customers. In the release, CEO Niraj Shah says that "Our efforts over 2023 led to large improvements in our core recipe across availability, speed and price competitiveness. These improvements were directly responsible for our robust share expansion throughout the year and for the step-up we saw in customer loyalty."
Yahoo Finance's Madison Mills breaks down the report.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
SEANA SMITH: Time for today's stock to watch Wayfair shares gaining in premarket trading after posting a narrower than expected loss and seeing an uptick. An active customers from a year ago, Yahoo Finance's Madison Mills on the floor of the New York Stock Exchange with the details on one of those movers, Maddie.
MADISON MILLS: Yeah. Seana, Wayfair's stock surging after those results and there are a lot of important details here that I want to dive into because I think it paints a broader picture about some of the themes we're seeing in this market. One of them being these repeat customers. That was one of the things that the CEO cited on the call as being a huge contributor to Wayfair's beat here.
They talked about those repeat customers being up. That's an indication to me that this is one of those names that could benefit from the higher for longer rate cycle. And that's because people are stuck in their houses with lower mortgage rates, they can't get out because rates are too high right now. And so they're looking around and saying, hey, let's upgrade the furniture in this place if we're going to have to be here for another couple of years.
Wayfair benefiting a lot from that. Another big theme we're seeing here, job cuts leading to more efficiency. The CEO cited that on the call as well talking about the capital allocation to those job cuts being worth it in the end, because it led to more efficiencies. So my question is going to be whether or not they're going to be able to continue to show that profit growth beating out their expenditures moving forward.
And if the higher for longer environment is going to continue to be a boon for Wayfair.
SEANA SMITH: All right. So we will continue to watch. Madison, we'll check in with you in a few minutes here at the opening bell.
